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{{redirect|HR 1207|the star (HD 24504)|List of stars in Perseus}}
{{redirect|HR 1207|the star (HD 24504)|List of stars in Perseus}}
The '''Federal Reserve Transparency Act of 2009''' ({{USBill|111|HR|1207}}) is a [[bill (proposed law)|bill]] introduced in the [[U.S. House of Representatives]] of the [[111th Congress]] by [[U.S. Congress|Congressman]] [[Ron Paul]] ([[TX-14]]). The bill proposes a reformed [[audit]] of the [[Federal Reserve System]] (the "Fed") before the end of 2010; it has 156 cosponsors, and has been referred to the [[United States House Committee on Financial Services|Committee on Financial Services]]. Its Senate version is called the '''Federal Reserve Sunshine Act of 2009'''. A related bill uses the same two names in reverse order.
The '''Federal Reserve Transparency Act of 2009''' ({{USBill|111|HR|1207}}) is a [[bill (proposed law)|bill]] introduced in the [[U.S. House of Representatives]] of the [[111th Congress]] by [[U.S. Congress|Congressman]] [[Ron Paul]] ([[TX-14]]). The bill proposes a reformed [[audit]] of the [[Federal Reserve System]] (the "Fed") before the end of 2010; it has 162 cosponsors, and has been referred to the [[United States House Committee on Financial Services|Committee on Financial Services]]. Its Senate version is called the '''Federal Reserve Sunshine Act of 2009'''. A related bill uses the same two names in reverse order.


==Purpose==
==Purpose==

Revision as of 14:01, 14 May 2009

File:HR 1207 TEA advocacy sign.JPG
The 2009 Tea Party protests widely featured H.R. 1207 advocacy signs, using slogans such as "'Fed' Up" and "Taxed Enough Already".
"HR 1207" redirects here. For the star (HD 24504), see List of stars in Perseus.

The Federal Reserve Transparency Act of 2009 (H.R. 1207) is a bill introduced in the U.S. House of Representatives of the 111th Congress by Congressman Ron Paul (TX-14). The bill proposes a reformed audit of the Federal Reserve System (the "Fed") before the end of 2010; it has 162 cosponsors, and has been referred to the Committee on Financial Services. Its Senate version is called the Federal Reserve Sunshine Act of 2009. A related bill uses the same two names in reverse order.

Purpose

According to its short title, the Federal Reserve Transparency Act of 2009 (H.R. 1207) amends Title 31 of the United States Code "to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported". It strikes exceptions to the audit protocol in 31 U.S.C. § 714 for the Federal Reserve System, the central bank of the United States, and replaces an indefinite deadline with a deadline of December 2010.[1] It also ensures the audit results are available to Congress.[2] The audit would include the Fed's "discount window", its funding facilities, its open market operations, and its agreements with foreign bankers.[3]

Proponents state that the Fed has never been audited by Congress since the Fed's creation in 1913.[4][5] Until 2009, the idea of auditing the Fed was considered a low-minority political position, supported by groups like the John Birch Society.[6] The Federal Reserve states that "the financial statements of the Federal Reserve Banks and the Board of Governors are audited annually by an independent outside auditor."[7] Paul says that the present audit process exempts the Fed's "most crucial activities".[8]

Bill progress

House

Representative Ron Paul introduced the bill to the U.S. House of Representatives of the 111th Congress on February 26, 2009, at which point it was referred to the Committee on Financial Services.[9] Its 11 original cosponsors were Neil Abercrombie (D-HI), Michele Bachmann (R-MN), Roscoe Bartlett (R-MD), Paul Broun (R-GA), Dan Burton (R-IN), Walter Jones (R-NC), Steve Kagen (D-WI), Ted Poe (R-TX), Bill Posey (R-FL), Dennis Rehberg (R-MT), and Lynn Woolsey (D-CA).[1]

Paul stated to the Congress, "The Federal Reserve can enter into agreements with foreign central banks and foreign governments, and the GAO is prohibited from auditing or even seeing these agreements. Why should a government-established agency, whose police force has federal law enforcement powers, and whose notes have legal tender status in this country, be allowed to enter into agreements with foreign powers and foreign banking institutions with no oversight?"[10] He immediately promoted the bill at the annual Conservative Political Action Conference (CPAC) on February 27.[11] Paul charges the Federal Open Market Committee with being "less than transparent" with its secret meetings.[12] In an April 2009 editorial, Paul thanked the Fed for its responsive attempt to enhance transparency and accountability, but called it "window dressing at best, and it's utterly useless at worst".[8]

An additional 17 representatives signed on to the Transparency Act during the first 18 days,[13] and more continued to do so; after Paul stated several more representatives were pending during Congressional spring break,[8] 16 more representatives cosponsored the bill on April 21, the first day after break. When Campaign for Liberty spokesman Matt Hawes predicted the sponsorship total would reach 92 after the following weekend,[14] the total actually reached 100, with 16 more cosponsors on April 28.

H.R. 1207 now has 156 cosponsors,[9] including 23 Democrats,[6] suggesting broad bipartisan support.[15][16] The total of 157 sponsors is 72% of 218 representatives; 218 votes are needed to pass any bill in the House.[17]

Calls for other members of Congress to cosponsor the bill have also been published in local papers and promoted at rallies, such as for:

Senate

On March 16, 2009, U.S. Senator Bernie Sanders (I-VT) introduced the Senate companion version, S. 604, the Federal Reserve Sunshine Act of 2009, with the same provisions; this version was then referred to the Committee on Banking, Housing, and Urban Affairs.[32]

The two titles for these two versions of the bill are not to be confused with the same two titles (used in reverse) for the two versions of a related bill. The House "Federal Reserve Sunshine Act of 2009" by Paul (H.R. 1348), and the Senate "Federal Reserve Transparency Act of 2009" by Sanders (S. 513), require the Federal Reserve to publish information on financial assistance provided to various entities during the 2008 Bailout. This bill creates a website listing all banks that have borrowed from the Fed since March 24, 2008, and the amount, terms, and "specific rationale" of the loans. Sanders commented, "I have a hard time understanding how you have put $2.2 trillion at risk without making those names available." Fed chair Ben Bernanke had told Sanders that publishing the names would make the banks feel stigmatized and potentially reluctant to borrow further.[2]

Reception

Glenn Beck of Fox News mentioned the Transparency Act while discussing ways for the average person to remind Congress, "Hey, you work for me".[33] The Motley Fool group economics blog called the bill "the first attempt at a true audit of the Federal Reserve since its inception in 1913" and affirmed Paul's Congressionally published column describing his legislation.[11][34]

Comparison to Paul's proposed Federal Reserve Board Abolition Act of 2007, which did not attract any sponsorship, along with other evidence, suggested that more Republicans are listening to Paul in 2009.[6]

The Centro Studi Monetari says a similar audit law is desired in Italy to publish the budgets of banks like Bankitalia.[35]

GoldSeek author Jake Towne believes that Fed transparency in relation to credit derivatives will probably happen naturally, citing the Transparency Act cosponsorship of 58 legislators and the Fed's urging major members and funds to list their derivatives on a New York City exchange.[36]

Advocacy

Support for the Federal Reserve Transparency Act of 2009 was one of the issues raised as part of the nationwide 2009 Tea Party protests. During Glenn Beck's April 15 show from his rally at the Alamo in San Antonio, Pat Gray interviewed a local supporter of the Transparency Act, drawing cheers from the crowd.[37]

The advocacy group Campaign for Liberty (CFL) encourages members to petition representatives to cosponsor the Transparency Act.[38] College Republicans at Appalachian State University, led by journalism major and CFL member Tim B. Reaves, staged a Boston Tea Party themed assembly for tax day 2009, to raise awareness for the Transparency Act; the event included wearing white wristbands to symbolize slavery and mailing tea bags to state representatives.[39] CFL president John Tate promotes the bill in conjunction with dealing with "the silent, destructive tax of monetary inflation",[40] stating that public outrage over bonuses paid to employees of AIG, Fannie Mae, and Freddie Mac has driven the Congressional support;[12] this thought was echoed in the Kansas City Star.[41]

At a rally in Peoria, Illinois, with over 500 people, Justin Abatie, Tazewell County CFL coordinator, urged support for the bill, leading the crowd with a blowhorn.[42] Ed Hipps, the CFL Philadelphia regional coordinator, also advocated for the bill at a local tax-day rally.[43]

Ron Paul, Andrew Napolitano, and state representative Jim Guest promoted the bill "at length" at the crowded first CFL regional conference in St. Louis, Missouri, affirming Americans' "right to know where their tax dollars are going, especially those going to companies from the stimulus package".[44] Pro-gambling group Gambling911.com is also interested in the Transparency Act, as an opportunity to audit the Federal Reserve, and also promoted the CFL "Freedom Celebration" regional conference.[45]

Among a rally of 90 citizens at the Hays County Courthouse, many protestor signs called for passage of the Transparency Act, a message resonating with Texas locals.[46] Pro-bill flyers, with the word "audit" drawn over Ben Bernanke's picture, were distributed at tea party rallies such as at the University of Southern Indiana.[47] Ben Roper's pro-bill sign in Wilkes-Barre said simply "Audit the Fed Reserve".[48] Thirteen-year-old Devon Minnema held a one-man tax-day protest in Dixon, California, waving signs and calling for support of the Transparency Act as well.[49]

References

  1. ^ a b 111th Congress (2009) (2009-02-26). "Text of H.R. 1207: Federal Reserve Transparency Act of 2009". Legislation. GovTrack.us. Retrieved 2009-04-14.{{cite web}}: CS1 maint: numeric names: authors list (link)
  2. ^ a b Kraft, Stephanie (2009-03-26). "Imperium Watch: Banks, Soundproof No More: U.S. Sen. Bernie Sanders of Vermont calls out the Federal Reserve for coddling the country's biggest lenders". Valley Advocate. Retrieved 2009-04-14.
  3. ^ Chapman, Bob (2009-04-18). "Gold, Silver, Economy & More". International Forecaster. GoldSeek. Retrieved 2009-04-19.
  4. ^ a b Kolar, Peter (2009-03-24). "Time to check Federal Reserve". Baraboo News Republic. Retrieved 2009-04-14.
  5. ^ Chaney, Paul (2009-03-21). "Wrong agenda". Los Angeles Daily News. Retrieved 2009-04-14. Also in the Inland Valley Daily Bulletin, the San Bernardino County Sun, and the San Gabriel Valley Tribune.
  6. ^ a b c d e f Weigel, David (2009-05-05). "Ron Paul's economic theories winning GOP converts — including Michele Bachmann". Minnesota Independent. Retrieved 2009-05-07.
  7. ^ "Since the Federal Reserve has considerable discretion in carrying out its responsibilities, to whom is it accountable?". Federal Reserve Board. 2007-03-07. Retrieved 2009-04-14.
  8. ^ a b c Paul, Ron (2009-04-20). "Audit the Federal Reserve for answers". Politico.com. Retrieved 2009-04-20.
  9. ^ a b 111th Congress (2009) (2009-02-26). "H.R. 1207: Federal Reserve Transparency Act of 2009". Legislation. GovTrack.us. Retrieved 2009-04-14.{{cite web}}: CS1 maint: numeric names: authors list (link)
  10. ^ Unruh, Bob (2009-03-03). "Congressman: Audit the Fed's books: Plan calls for complete review of private money policy bosses". MoneyNetDaily. WorldNetDaily. Retrieved 2009-04-14.
  11. ^ a b "Support H.R. 1207 to Audit the Federal Reserve". Motley Fool. 2009-03-10. Retrieved 2009-04-14.
  12. ^ a b Wilson, Dan (2009-04-03). "Ron Paul Audit the Fed Gains Momentum – Federal Reserve History Of Booms And Busts – Gold Silver and Oil Prices". Best Syndication News. Retrieved 2009-04-14.
  13. ^ Zahn, Drew (2009-03-16). "Push to audit Federal Reserve gains steam: Lawmakers join call to examine nation's money controllers". MoneyNetDaily. WorldNetDaily. Retrieved 2009-04-14.
  14. ^ Hawes, Matt (2009-04-27). "Take Action this Tuesday to Audit the Fed". Campaign for Liberty. Retrieved 2009-04-29.
  15. ^ a b "McHenry Backs Federal Reserve Transparency Act". Lincoln Tribune. 2009-05-05. Retrieved 2009-05-07.
  16. ^ a b c d Rutherford, Tony (2009-04-30). "91 Co-Sponsors Ask for Federal Reserve Transparency". Huntington News Network. Retrieved 2009-05-07.
  17. ^ Cushman, Charles Bancroft (2006). An Introduction to the U.S. Congress. M.E. Sharpe. p. 61. ISBN 9780765615060.
  18. ^ a b c Seney, Caleb (2009-04-04). "Press Congress to be accountable". Monroe News Star. Retrieved 2009-04-14.
  19. ^ "Blunt Cosponsors Legislation Promoting Federal Reserve Transparency". Community Free Press. 2009-03-27. Retrieved 2009-04-16.
  20. ^ Charles, Lisa (2009-04-11). "Herger on Federal Reserve audit?". Appeal-Democrat. Retrieved 2009-04-14.
  21. ^ a b Janetka, Gregory T. (2009-04-18). "Fed most in need of transparency". Arlington Heights Daily Herald. Retrieved 2009-04-19.
  22. ^ "Support HR 1207!". Auburn Journal. 2009-03-11. Retrieved 2009-04-14.
  23. ^ Richman, Josh (2009-04-12). "Barbara Boxer is a grandma, again". Oakland Tribune. Retrieved 2009-04-14. Also in the Alameda Times-Star, the Fremont Argus, the Contra Costa Times, the Daily Review, the San Mateo County Times, and the Tri-Valley Herald.
  24. ^ Thompson, Stuart (2009-04-17). "Financial realities". Fairbanks Daily News-Miner. Retrieved 2009-05-07.
  25. ^ Special (2009-04-12). "Rants and Raves". Augusta Chronicle. Retrieved 2009-04-14.
  26. ^ Jones, Daniel W. (2009-03-25). "Audit the Fed". Dothan Eagle. Retrieved 2009-04-14.
  27. ^ Ayari, Mehdi (2009-04-16). "More than 200 march on Tax Day". Indiana Daily Student. Indiana University. Retrieved 2009-04-16.
  28. ^ Feeney, Tyler J. (2009-04-25). "Support FRTA". Topeka Capital-Journal. Retrieved 2009-05-07.
  29. ^ a b Anatone, Richard (2009-04-14). "Audit the Federal Reserve". The Anchor. Rhode Island College. Retrieved 2009-04-16.
  30. ^ Crecelius, Lauren (2009-04-22). "Tea Party Brings Out Activists". Santa Ynez Valley Journal. Retrieved 2009-05-07.
  31. ^ Bernier, Jessica (2009-05-02). "Transparency is required". Times Argus. Retrieved 2009-05-07.
  32. ^ 111th Congress (2009) (2009-03-16). "S. 604: Federal Reserve Transparency Act of 2009". Legislation. GovTrack.us. Retrieved 2009-04-14.{{cite web}}: CS1 maint: numeric names: authors list (link)
  33. ^ Beck, Glenn (2009-03-23). "Are You Profiled as a Militia Member?". Glenn Beck. Fox News. Retrieved 2009-04-14.
  34. ^ Paul, Ron (2009-02-23). "On Transparency of the Fed". Texas Straight Talk. 111th Congress (2009). Retrieved 2009-04-14.
  35. ^ Martin, T. (2009-04-01). "Ron Paul's Bill To Audit The Federal Reserve Now Has 55 Co-Sponsors!". Centro Studi Monetari. Retrieved 2009-04-16.
  36. ^ Towne, Jake (2009-04-09). "Money Matrix, Part 11: Bring Light to Dark Derivatives!". GoldSeek. Retrieved 2009-04-14.
  37. ^ "Glenn Beck". Glenn Beck. Fox News. 2009-04-15. Retrieved 2009-04-16.
  38. ^ "'Audit the Fed' petition to Congress". Campaign for Liberty. Retrieved 2009-04-14.
  39. ^ Sztukowski, Edward (2009-04-07). "Students throw modern day tea party on Tax Day". The Appalachian. Appalachian State University. Retrieved 2009-04-14.
  40. ^ Staff (2009-04-15). "Taxes, Tea Parties, and the Federal Reserve - Ron Paul's Position". Best Syndication. Retrieved 2009-04-16.
  41. ^ Baber, C.K. (2009-03-30). "AIG bonus onus". Kansas City Star. Retrieved 2009-04-14.
  42. ^ McDonald, Karen (2009-04-15). "More than 500 protest during tax day 'tea party'". Peoria Journal Star. Retrieved 2009-04-16.
  43. ^ Wagh, Manasee (2009-04-19). "A timeless protest of government". Doylestown Intelligencer. Retrieved 2009-04-19.
  44. ^ Messenger, David (2009-03-30). "Ron Paul draws students to Liberty Campaign event". Student Life. Washington University. Retrieved 2009-04-14.
  45. ^ Woo, Jenny (2009-03-23). "Ron Paul on The Economy: Most People Recognize This As A Depression". Gambling911.com. Retrieved 2009-04-14.
  46. ^ Wardwell, Sean (2009-04-15). "Tea party comes to courthouse square". Newstreamz San Marcos. Retrieved 2009-04-16.
  47. ^ Webb, Jon (2009-04-15). "College Republicans have 'TEA party': Protest part of nationwide demonstrations against federal spending". The Shield. University of Southern Indiana. Retrieved 2009-04-16.
  48. ^ Marckini, Jen (2009-04-16). "Wilkes-Barre joins the 'parties': As many as 400 people, many with signs, gather at Square to protest federal spending". Times Leader. Retrieved 2009-04-16.
  49. ^ Minnema-Dingman, Debra (2009-04-19). "Dixon boy stages his own anti-tax protest". Sacramento Bee. Retrieved 2009-04-19.


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